should i file 540NR california taxes for 2025?

[akir2021]

I am a U.S. citizen living overseas. In 2025, I opened a checking account and used my friend’s California address for convenience. In 2026, I received a 1099‑INT from the bank showing that same California address because I earned interest on sign up bonus. Given this and the fact i have no state income for 2025, should I file a California non‑resident tax return so I don’t have to deal with potential notices about not filing for 2025? I’ve been filing as a non‑resident since 2018, and I had U.S.‑source income in CA through 2024 Thank you.

[ThomasM125 · Accepted solution]

Interest income earned on a bank account would be sourced in the state in which you reside. Since you are not a resident of California, you would not have to pay tax on it there. However, the Form 1099-INT reporting the interest may list the income as taxable in California since you have an address there. So it may be wise to submit a non-resident tax return if you are concerned about getting notices. Also, it may be difficult to explain to the California Franchise Tax Board why you have an address there if you don't reside there. They may default to the entry on the Form 1099-INT and assume you are a resident and require you to pay any tax due.

Your income would have to be over certain thresholds to be required to file, you can see the applicable tables here from the California Franchise Tax Board.